Enhancing Inventory Visibility Through Smart Inventory Estimation

Solution Smart Inventory Estimation
Solution Smart Inventory Estimation
Industry CPG
Region US
Technology GCP
Context
Accurate inventory estimation is vital for CPG enterprises managing fragmented retail networks with inconsistent data and reporting gaps. Poor visibility leads to stock-outs, overstocks, and inefficient replenishment, directly affecting sales and operational performance. With increasing channel complexity and costly hardware solutions, CPGs need scalable, data-driven methods to infer true inventory levels. Smart estimation models bridge these gaps, improving forecasting accuracy, and enabling faster, more reliable decision-making. 
Problem Statement

The client faced major challenges with inventory estimation and inventory visibility due to inconsistent reporting across retail stores where some updated daily, others weekly or monthly. This led to inaccurate tracking, operational inefficiencies, and increased inventory loss, driving frequent stock-outs, and planning disruptions. RFID was explored but proved too costly. The need for a scalable, data-driven solution became critical to restore accuracy, transparency, and control across the inventory ecosystem. 

Impact

  • Improved stockout detection by ~21% through enhanced inventory visibility  
  • Reduced inventory mismatches by ~55% through reliable stock estimation  
  • Infrastructure costs saved by $4.2M by eliminating the reliance on RFID setup 

 

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